Congress Continues Reconciliation Plan Negotiation

As Congress continues to negotiate the final price tag of the proposed $3.5 trillion dollar budget reconciliation plan, the future of specific allocations to the broader agriculture industry remain unclear. As it stands, the bill proposes $40 billion for forestry programs, $18.7 billion to rural development, $1 billion for biofuel infrastructure, and $7.5 billion for agriculture research. Additionally, it proposes $28 billion for conservation measures, including a new cover crop initiative through USDA’s Farm Service Agency that provides $5 billion in payments for producers utilizing cover crops as a conservation practice. Although there is no clear timeline on next steps, we can expect negotiations to continue on Capitol Hill and for the Administration to continue to push for passage. Also up for consideration is the $1.5 trillion dollar bipartisan infrastructure bill which passed the Senate in August. The two legislative packages have been linked by some members of the House and it is expected they will need to be considered in tandem on the floor of the House of Representatives.